The world is undergoing a period of unprecedented change, characterised by a rising population, rapid economic growth, the spread of globalisation, pressure on the environment and continuing social, political and cultural divisions.

These changes represent challenges to the complex global system on which companies depend for their survival and success. This system involves three interdependent sub-systems - the natural environment, the social and political system and the global economy. The collapse of any one of these would result in the collapse of the others.

As we look into the future, the world population will continue to grow. However this growth will not be evenly distributed, with some populations, for example in Western Europe, ageing and even declining.

Although parts of the world are celebrating and enjoying the consequences of rapid economic growth - prosperity, innovation, better health, longevity, education, freedom of choice and greater opportunity to travel - others are not benefiting.

The same growth is leading to greatly increased pressure on resources and on the environment.
Economic and social gaps are widening. Cultural, national, ideological and religious divides remain deep enough to provoke terrorism and conflict. The continuing existence of extreme poverty and human rights abuses is both a threat to social and political stability and a matter of conscience.

But much remains unpredictable - the pace and consequences of global warming, the incidence of natural disasters, the outbreak of conflict or the impact of terrorism.

The nature of global companies is changing. For example, the number of global companies based in China, India and Russia is increasing rapidly. Global companies are restructuring their operations to take advantage of the availability of labour and skills. In some parts of the world, services are replacing manufacturing as the major source of jobs and wealth creation and manufacturing activity is increasingly moving to emerging countries. For many companies, the key resources are now knowledge and talent as well as capital and labour.

Powerful new technologies will be of critical importance and have profound economic and social consequences. They may also provide part of the answer to the huge challenges ahead of us.

Another part of the solution will lie in the choices made by consumers, investors and voters – supported by proactive and imaginative companies.

However, whatever the future holds, those in the developed world cannot be expected to forgo overnight a lifestyle dependent on aeroplanes, cars and other accepted technology. Nor can we expect those in the emerging economies to forgo such benefits as they become more affordable.

Nevertheless, we believe that we are entering a period of history in which it is becoming clear that the operation of the current system is unsustainable and that to progress further, tomorrow’s global companies need to redefine success and help to create better frameworks for the workings of the market.